Financial Tribune – Depressed domestic demand, dwindling purchasing power, shortage of raw materials, higher finished costs and the after-effects of sanctions are the root cause of the weakening performance of local manufacturing units in Iran.
Twenty percent of manufacturing units located in industrial towns across Iran have been hit by recession, a deputy minister of industries, mining and trade said.
“Up to 30% of industrial towns’ manufacturing enterprises are operating at less than half their full capacity, 20% are working at 50-70% while the remaining are running at over 70%,” Mohsen Salehinia added.
According to the official, there are 973 industrial towns in Iran.
“A total of 43,000 manufacturing units are based in industrial towns, which generate 45% of the country’s total employment,” he said.